All Forum Posts by: Kellon Parkinson

My wife and I have found what seems like a really great deal for us in Ogden, Utah. It's a non-conforming duplex in a nicer area, somewhat close to the local university. 

We were excited to find that we could purchase this deal on seller-financing, which is helpful for us so we won't have to get an owner-occupied loan. 

Our biggest concern right now, though, is related to the rental market in a college town while universities are offering online classes due to Covid-19.

Are any of you concerned about a shortage of renters in college areas since students aren't actually in school?

Do any of you feel like this is even something to worry about? I realize that the student population is also a fairly small percentage of the city's population, but it's something that still seems like it could affect the market rents.

I came across a great property; it's a 5 bed SFH, but the basement is a 2 bed 1 bath MIL apartment.

The current owner has been renting out the basement, and the home is currently for sale with the basement tenants still inside. Upstairs is vacant. 

However, it even says in the listing that the city doesn't recognize the apartment as a legal accessory apartment. So I looked into the zoning ordinance, and the only reason it's not allowed is because the lot needs to be at least 8000 sq. ft. This lot is 7300 sq. ft. 

This house would make an awesome house hack for us. We would live in the basement apartment, and rent out the upstairs.

I'm just concerned about the apartment not technically being approved.

Only the owner of record can request that the city permit the apartment, so I couldn't do anything about it until I own the property.

What would you do?

@Theresa Harris

That makes perfect sense, and is not a method of approaching things that I had considered. I love the idea of working the numbers backward like that. Thank you!

@Ujwal Velagapudi

Thanks for that well-thought response. You nailed my question right on the head. I listened to the BP episode with Nathan Tabor and he says you make your money during the due diligence period, giving you more negotiation room. That might be part of the reason I was wondering if I should look deeper into the deals that other people have skipped over.

 My two cents, and this is from advice that a mentor has given me: Condos are not investment properties. There's just too much out of your control as a condo owner, since you don't own anything but the interior walls. When the roof on the building needs replaced, everyone pays for it, even if it's only damaged on the opposite corner from your condo. Same concept with many repairs, maintenance, etc. But hey, if it cash flows enough, and that's your main goal as an investor, then go for it!

 That's incredible Logan! This is actual cashflow, not gross rent - P+I? I'm sure I'm speaking for everyone when I say we'd love to hear more about that deal.

Also, how were you able to finance two different multi-units with only 7k down? This all sounds really interesting!

edit

I’m spending quite a bit of time every day analyzing deals. It’s been a lot of fun, and great practice for me.

Some days I have a hard time deciding which deals to spend time analyzing, versus just skipping over it and looking for a better “first glance” deal.

When you’re analyzing deals, which is a better approach:

1) If a deal seems bad at first, analyze it to see if it can be proved otherwise (maybe the fact that it looks bad means other investors have skipped over it).

or

2) If a deal seems good at first, analyze it to see if it can be proved otherwise (maybe it’s been made to look better than it really is and you’ll end up with a lot of competition).

I’d love some input! What has helped you pick which deals to spend time analyzing?

Brandon, have you read Brandon Turner's book, The Book on Investing In Real Estate with No (and Low) Money Down?

I'd start there. House hacking, or buying a property that's a little bit of a project so you can force some equity right from the start, would be great beginning options to help you learn the process with less risk than other investment strategies.

My suggestion has nothing to do with your actual question about looking for a good Realtor. 

My suggestion would be this: if you're going to make a post asking for advice from a big group like Bigger Pockets, where most people on here are very successful and know what they're saying, you'd be wise to accept the advice they're offering, rather than saying things like 

"...even though I appreciate the feedback, none are giving real value. Saying things like hey it's probably you. That's the most cliche thing to say."

Imagine the difference you'd experience by just saying "Hey thanks for that tip. I'll re-evaluate my approach."